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Preliminary business figures: Bosch Rexroth 2015 with regionally different business development

Total sales 2015 is at 5.4 billion euros

Weak economic cycle for capital goods strains business development

Focus on core business with mobile and industrial applications

Solutions for Industry 4.0 in demand worldwide

Lohr – Bosch Rexroth finds itself challenged by a globally weak economic cycle for capital goods. According to preliminary figures, the company in 2015 registered a comparable calculated decline in sales by 3.2 percent to 5.4 billion euros. The decline in sales already considers the sales of the large gear units business during the year to ZF Friedrichshafen AG. Bosch Rexroth was able to increase sales in North and South America. Sales remained stable in Germany despite a difficult market environment. The company recorded a declining business development in the remaining European countries and in Asia.

The fiscal year 2015 was characterized by the continued weak economic performance in emerging countries, low commodity prices in particular of crude oil and natural gas, as well as turbulences in the capital markets. The dynamic of the European mechanical engineering industry was very weak in 2015. Machinery production in the USA increased but the development weakened over the course of the year. Business development of Bosch Rexroth in Asia was mainly caused by the structural change of the Chinese economy, which currently develops away from investment-driven growth to a consumption-driven growth at a lower level. This structural and quantitative change resulted in a dynamic of Chinese machinery production significant below average. Strong declines were recorded there, especially in the construction equipment sector. Bosch Rexroth does not expect significant growth impulses for 2016 from the markets. For example, investments in existing or even new fields and the downstream industries are not expected due to the low price for crude oil. Markets that are less dependent on raw materials offer a more positive outlook. Industry 4.0 - the connection of production - will be an important growth driver in factory automation.

Bosch Rexroth restructured itself in this market environment and improves its competitive situation. Therefore the company sold the large gearbox business to ZF Friedrichshafen AG in 2015 and now focuses on the core markets of industrial and mobile applications with an attractive product portfolio. A comprehensive internal program streamlined structures and optimized processes in the Industrial Applications division. Bosch Rexroth also started the restructuring of the Mobile Applications division, which was particularly affected by the nearly global decline in demand for construction, agricultural, and working machines.

“The current market environment shows the importance of differentiating ourselves from the competition with technology. This applies in particular to the maturity level of our solutions all around the field of the future Industry 4.0,” says Rolf Najork, since February 2016 Chairman of the Executive Board of Bosch Rexroth. “Bosch Rexroth plays a leading role for products and solutions for connecting machinery and equipment. Customers addressing the topic of Industry 4.0 around the globe demand our expertise and are looking for examples how we implement these solutions in our own plants. We will continue to expand this competitive edge.” In April 2016, for example, the company will present intelligent and connected solutions for assembly stations in versatile production at the Hannover Messe. A highly compact and efficient hydraulic power unit, which monitors itself via Condition Monitoring and easily integrates into connected structures is another innovation. In doing so, Bosch Rexroth focuses on open standards across manufacturers and programming languages of the world of automation, IT, and the Internet.

The company will publish a detailed outlook for the current year and the final business figures for 2015 on April 25, 2016 within the scope of its annual press conference during the Hannover Messe.

Economical, precise, safe, and energy efficient: drive and control technology from Bosch Rexroth moves machines and systems of any size. The company bundles global application experience in the market segments of Mobile Applications, Machinery Applications and Engineering, and Factory Automation to develop innovative components as well as tailored system solutions and services. Bosch Rexroth offers its customers hydraulics, electric drives and controls, gear technology, and linear motion and assembly technology all from one source. With locations in over 80 countries, more than 33,700 associates generated sales revenue of approximately 5.6 billion euros in 2014.

The Bosch Group is a leading global supplier of technology and services. It employs roughly 375,000 associates worldwide (as of December 31, 2015). According to preliminary figures, the company generated sales of more than 70 billion euros in 2015. Its operations are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. The Bosch Group comprises Robert Bosch GmbH and its roughly 440 subsidiaries and regional companies in some 60 countries. Including sales and service partners, Bosch’s global manufacturing and sales network covers some 150 countries. The basis for the company’s future growth is its innovative strength. Bosch employs 55,800 associates in research and development at roughly 115 locations across the globe. The Bosch Group’s strategic objective is to deliver innovations for a connected life. Bosch improves quality of life worldwide with products and services that are innovative and spark enthusiasm. In short, Bosch creates technology that is “Invented for life.”

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